Doug Dreher, CEO of The Hotel Group (THG), draws down on 40 years’ experience to identify a short-list of often-overlooked “musts” to growing a hotel company.
EDMONDS, Washington — Doug Dreher learned a lot about making the numbers work as part of the leadership team that evolved The Hotel Group (THG) from a determined start-up in 1984 to one of the Top 40 hotel management companies in 2024. He also learned that success isn’t built on spreadsheets alone.
In this exclusive custom content interview, THG’s CEO revealed his four-point success strategy based on key learnings gathered over the last four decades of building an award-winning hotel management company. He delved into his own experiences as well as those of his partner Randy Meyer, THG’s CFO, and, in his words, “the countless number of leaders, managers and associates that have been so impactful in the THG journey” to create a fresh checklist of diagnostics for long-term corporate health and growth.
For us, the ‘how’ is so much about our values and how we impact our team's lives. It’s not just what we're focused on; it’s how we do it."
Doug Dreher
Here are his business-building takeaways:
1. People don't care about how much you know, but how much you care. Dreher, Meyer and the THG leadership team strongly advocate fostering a culture of empathy and compassion within the organization.
"In the hospitality industry, unlike other sectors of commercial real estate (CRE), people are the differentiator," Dreher said. THG’s dedication to nurturing a team by embodying what he refers to as the "3 Cs" (caring, capable and committed) underscores a strong belief in the transformative power of human connection. "Our great people make the difference, and we see it time and time again," he added.
It's not just the mission statement, but the way THG pulls that through that makes this nice-to-have a fundamental component in corporate operations. Dreher emphasized the importance of moving beyond transactional interactions, even going as far as urging his associates to “linger a while” and truly get to know their teammates and guests on a deeper level. He and the THG leadership team’s focus on people first is an essential identifier for the company.
It’s also integral to THG’s bottom-line performance and status in the hospitality industry. High satisfaction scores from team members have translated to high guest satisfaction grades along with benefits from enviable levels of staff retention to the revenue-boosting opportunities created by an engaged, empowered team.
Hospitality industry awards and accolades offer further proof that the people-first model works and that THG epitomizes its success. The company has garnered numerous prestigious accolades, including the 2021 and 2024 Hilton Connie Award for The Sound Hotel Seattle Belltown, Tapestry Collection by Hilton and the 2022 Marriott Platinum Circle Award for Residence Inn Wenatchee, Washington. These honors are just few of many that reflect THG's commitment to fostering a collaborative environment where everyone contributes in big and small ways.
2. This industry ain't for wimps. Reflecting on the industry's resilience in adversity, Dreher shared THG’s experience navigating economic downturns and the challenges posed by watershed events such as COVID-19 and the Great Financial Crisis.
"Suffering leads to endurance, which leads to character building and ultimately leads to hope. You get stronger through the downturns,” he said. In his view, the industry's resilience isn't just about weathering storms; it's about the growth and fortitude that arise from adversity, shaping not only the business but also the individuals within it.
This industry ain't for wimps...Suffering leads to endurance, which leads to character building and ultimately leads to hope. You get stronger through the downturns.”
Doug Dreher
3. Do your due diligence. He stressed the importance of doing thorough research and being intentional in every business decision. "Nothing's harder for the team than if you don't buy right. Do your homework,” he said. “Sometimes the best deals are the ones you walk away from."
Dreher also pointed out the significance of partnering with like-minded individuals and organizations with shared values and aligned goals. THG’s emphasis on due diligence and strategic alignment serves as a guiding principle for navigating the complexities of the business landscape, thus ensuring decisions are grounded in thoughtful consideration.
That applies across its business, from evaluating individual assets, selecting brands or negotiating a management contract to undertaking a major corporate move. In 2021, THG joined forces with Hotel Equities (HE) as a strategic alliance partner and part of the blended HE family. As a result, Dreher said, THG gained additional resources, support and collaboration for its growing portfolio and team.
4. The "how" matters. There’s a deeper purpose driving operations at THG. Dreher expanded on the culture side of THG, "For us, the ‘how’ is so much about our values and how we impact our team's lives. It’s not just what we're focused on; it’s how we do it."
Dreher drilled down on the fact that the "how" is ingrained in the company's DNA and how important that is in creating a workplace where every individual feels valued and “part of something special”.
He said that THG also encourages a strong culture of both freedom and accountability plus learning from mistakes. According to Dreher, the THG mantra of “learn from it and move on” applies when mistakes are made as well as when cultivating a culture of high transparency and “communicating the good news fast, bad news faster and awful news in real-time”. THG also has a principle of “not using email for conflict resolution” and prioritizing both relationships and results.
It's worth noting that THG boasts an impressive average length of management contracts (11 years) and associate tenure, contributing to low turnover rates of 10.65% within the company,” he said. “This longevity reflects the strength of THG's organizational culture and the effectiveness of its principals’ leadership philosophy in cultivating a loyal and committed workforce.
Mary Scoviak is custom and design content director at Hotel Investment Today.
The views and opinions expressed in this content do not necessarily reflect the opinions of Hotel Investment Today or Northstar Travel Group and its affiliated companies.